Lawmakers adjourned early Monday after they failed to reach a consensus on what should be taxed, as Gov. Jeff Landry attempts to overhaul the state’s tax code.
The goal of the session is to simplify Louisiana’s tax code and reduce individual income and corporate tax rates. To make up for the revenue shortfall, there are bills to tax more goods and services. Among them is HB 9.
Originally, Republican Rep. Neil Riser’s (R-Columbia) bill taxed 42 goods and services that are not currently taxed, which would bring in a total of $502 million in revenue. His amended bill would cut the list of goods and services down to 19, which would bring in just $130 million to the state.
“And what I want to do is to keep moving forward and y’all are welcome to come to me and speak to me on it on anything you’re amicable to or might want to change. Please do that,” said Riser.
The 19 items facing taxes are:
- Alarm system services
- Cable TV and satellite services
- Car wash wax
- Computer software installation repair
- Dating services and apps
- Information services
- Intrastate limousine and van services
- Lodging services
- Photo finishing, film development
- Photographic studio services
- Embroidery, monogram services
- Security, PI, protection, armored car services
- Spa services
- Pool cleaning and maintenance services
- Tanning salons
- Tattoo parlor services
- Taxi cab and rideshare
- Travel Services
- Delivery Services
There are also disagreements about cutting tax incentives.
There’s been strong support to keep Louisiana’s Motion Picture Production Tax Credit, the state’s $150 million tax incentive for film and TV production. The state offers production companies a 25%to 40% rebate on production costs.
But the program could be eliminated if HB 2 becomes law.
Last week, several members of the House said they want to save film tax credits and vowed to vote against the bill if it returns from the Senate unamended.
The Louisiana state historic rehabilitation tax credit program, which encourages the restoration and renovation of historic buildings, is also on the chopping block if HB 2 advances.
The bills require a two-thirds vote in both chambers and would then go before voters in March. But time is of the essence. The session is scheduled to end Monday, Nov. 25.
